Update August 2017 – UniMed UK’s dubious Sound Foundation Community Care Charity and its mystery VAT debt

SFCC-driveway-2015August 2016 I reported UK’s HM Revenue & Customs landed rewarded our complaints about Universal Medicine’s sham UK charity with a big fat tax bill to Sound Foundation Community Care. Almost £400,000. Update August 2017: Either I misinterpreted the charity’s 2014-15 end of year accounts or UM are telling lies in official documents. According to the charity’s accounts, released in the last week or two, the charity’s VAT debt was incurred as part of the charity’s transfer from trust to an incorporated company. UM says the VAT was refunded. Strangely, in spite of me repeatedly asking the charity’s trustees to explain how a £378k VAT liability appeared on the charity’s accounts, they made no attempt to correct my mistaken interpretation. None. I’m happy to retract my statements from last year and apologize to readers for the misunderstanding. If there was one. Will we receive an explanation for the outstanding anomalies in the accounts? And we’re still left with the problem that literally anyone can register a charity in the UK and take advantage of charity laws for personal financial benefit. 

Compare for yourself:

Unfortunately this is always a potential outcome when authorities don’t communicate with complainants. Complainants and members of the public are left to interpret publicly released information as best they can. I sought advice on the VAT liability and no one I approached was able to provide a better explanation. Commenter, Pranic Attack, has taken a look in the comments below

I tweeted numerous questions to the charity’s directors and none replied. The same bunch attack anyone who questions, refuse to give reasonable responses and then whinge about their reputation problems. I understand why they didn’t reply, because if they explained the reason for the VAT liability, they would then also have to answer the many other questions about the charity’s operation raised below. For that reason, I’m leaving last year’s article as I published it below. I’ve struck out the info that appears to be incorrect. I’ve added this year’s updated information in blue. 

Also, as I’ve commented below, there’s a strong possibility I was right and my complaint did result in action by HMRC. UM may have simply paid the VAT to avoid a scandal. 

I would also like to reassure readers that I am not mistaken in reporting other regulatory actions taken by the UK and Australian Charity Commissions, the ATO and AHPRA. Current legal actions will enable me to exhibit the relevant documents, obtained via subpoenas and discovery (in addition to publicly available documents) in court. 

What happened?

The Sound Foundation Charitable Trust ended up with a VAT (value added tax) liability of £378,426 (AUD650k). HMRC and the UK Charity Commission (UKCC) don’t release findings to complainants or public. However, seeing the charity has very little meaningful income, we can I reasonably assumed the 20% VAT applied to the use of donated funds to construct the Sound Training centre. UM tried to pass the £1.85m construction off as a premises with a charitable purpose, but HMRC has rightly found it’s operating for commercial use. Charity law is complex, however, Serge Benhayon’s upper rung of enablers have enough law and accounting qualifications between them, and one of the trustees, Michael Nicholson, is a chartered accountant. They have no excuse. The building is used nearly exclusively for the Benhayon cash raking circus commercial activities. If it’s not a scam, what is it?

See below in blue. The VAT was incurred on the sale of the premises. 

According to the 2015 charity accounts published on the UKCC website, it appears the charity received a retrospective bill between September 2014 and January 2015. The building was completed in March 2012, and the largest VAT bill between then and September 2014 was £5921.

I’d like to thank our friends in the UK who helped us achieve this outcome either way. Thank you very much!

From trust to company

We noticed in January 2015 that the Sound Foundation charitable trust suddenly and inexplicably incorporated into Sound Foundation Community Care, a company limited by guarantee. Unfortunately, we had to wait until the 2015 accounts were published in the last couple of weeks to determine why.

An incorporated company structure, as opposed to a trust, protects the trustees from personal liability. The trust was a building fund. We have student notes and communiqués describing fundraising to construct a ‘Universal Medicine conference centre’ with treatment rooms and a swimming pool facility. When the trustees copped the near £0.38m tax bill, it appears they’ve scrambled to avoid liability by shifting to the new company structure.

I don’t know what legal position they’re in at this point. The press might be able to find out more, or we may have to wait until next year’s accounts to get the real picture.

Update: The explanation for the VAT liability and accompanying whinge in the charity’s 2016 accounts is as follows: 

There is and has never been any VAT debt. The material that was cherry picked that appeared to show a VAT debt simply illustrated the processing of the transfer of legal ownership of the charity’s building from the inaugural trustees of the Sound Foundation Trust to a newly incorporated substitute trustee, the Sound Foundation Community Care. There is no debt to pay and HM Revenue and Customs confirmed there were ‘no levied penalties to pay’. The Charity Commission confirmed the same. 

In response to a number of baseless complaints made by the same person, the Charities Commission, acting in accord with its regulatory responsibilities was duty bound to investigate the complaints regardless of their obviously vexatious nature. Following a thorough investigation, in the Commission’s informed assessment it concluded:

Following analysis by Charity Commission accountants that there are no recommendations or causes of concern. The conclusion of the review will mean that if the Commission receive similar complaints from this or other complainants it is unlikely they would be assessed and escalated to a regulatory team as they would potentially be deemed vexatious. The Commission’s regulatory case has now been concluded.

They have the hide to accuse me of cherry picking. The complaints I made in 2013 resulted in a mandatory compliance order, and the charity was made to clean up its act. That’s not ‘vexatious’ by any real world definition. The complaints I made to HMRC weren’t vexatious either. The charity’s £1.75m conference premises and commercial swimming pool facility were constructed with tax exempt donated funds, most of which were donated by Esoteric devotee, Michael Nicholson. The Benhayons hire the charity’s premises for their commercial use at massively discounted rates. It’s a shameless rort, and an insult to tax payers.  

2017 Update – recent accounting fun and games

Added to the info below, Simone Benhayon still only paid £10k to hire the Creative Aquatic commercial pool facility for the year. She also wrote off £68k of ‘swimming activities’ as charitable ‘donations in kind’. What a joke. I might try that on my next tax returns. I’ll write off $100k worth of blogging every year as a donation in kind. To the public benefit. Why not? A further £20k has been written up as donated ‘services and facilities’. Six hours per week of admin by a ‘secretary’ and ‘treasurer’ for a charity that does virtually nothing, 15 hours per week cleaning a facility that’s barely used. £5000 in boiler repairs – for the commercial pool?

Serge Benhayon, the first of the sixth dimensional Hierarchy to grace us with his incarnation from the lofty Sham-ballic realms – ran three months of commercial activities at the Sound Training Centre and treatment rooms in 2015-16, turning over hundreds of thousands of pounds, and paid nil for use of the facilities. Down from £4,167 in 2014-15.

During the year Universal Medicine UK Ltd, a company in which the trustee Simone Benhayon is a director and which is run by Simone’s father, Serge Benhayon, paid the charity nil (2015:£4,167) for the use of facilities a the Sound Training Centre. (p.31 of charity accounts.)

Now that’s what I call a discount.

More creative accounting

On top of the donated admin work of a ‘secretary’ and ‘treasurer’, the charity paid unspecified ‘management’ expenses of £115k. That’s a shitload of ‘management’ for a company that does so little. Or by ‘management’ do they mean legal bills? For a VAT debt wrangle with the regulator?

A VAT repayment supplement of nearly £20k?  What’s the break-down for that?

The Sound Foundation also accounted £8,257 in ‘accommodation’ as a ‘cost’ of ‘charitable activities’. Who wants to bet the ‘charity’ has written off accommodating the esoteric staff or pilgrims at the retreats and other UM events, even though UM charges them for it?

No wonder they didn’t have the guts to answer my questions.

What next?

The Sound Foundation Community Care charity is not required to publish their accounts until mid next year. However, the current overview on the UKCC website shows the liability was still outstanding in September 2015. All assets were transferred from the trust to the new structure, along with the tax debt. The current figures on that page are unhealthy. The charity is operating at a loss. The charity’s income is woeful (see below). It has a £2m (AUD3.4m) asset with expensive upkeep and barely enough cash in reserve to sustain operation, plus a giant £0.38m debt.

I don’t know enough about tax enforcement in the UK, but watch this space. Someone will have to pay. I can’t see the beneficiary of this whole rort, Serge Benhayon, fronting up with it, even though he very amply has the reserves, thanks to years of scamming. Next in line might be Michael Nicholson, who donated over £1m to the building fund in 2011 and 2012. Musician, Chris James, was the charity’s founder, but quit as a trustee soon after it was incorporated.

The remaining trustees are Dragana Brown, NHS manager and cervix whisperer, Jane Keep, retailer Stephen Anderson, and London Esoteric Breast Massager and company director of Esoteric Women’s Health Pty Ltd and All Rise Say No, Sara Williams. Trustee Simone Benhayon is company director of UM UK and All Rise Say No, on top of her swim school Creative Aquatic.

Given Benhayon’s congregation has atrophied to less than 600 and he’s already milked them as much as he can, the flock is unlikely to bail the charity out.

Again, I don’t know what this means for the charity at this stage, or the building. The Sound Training Centre is plonked on The Lighthouse B&B headquarters property (doubles as UM’s UK headquarters) outside of Frome in rural Somerset. It’s difficult to imagine there’s a demand for hire of cult branded event spaces out there. It’s a high maintenance asset on land on a 999 year lease to the Lighthouse owners, ardent UM devotees, Simon and Janet Williams.

History

In 2010, UM’s Way of the Livingness applied for charity status in the UK as a religion. It was denied. The Charity Commission found it was not a genuine religion and demonstrated no public benefit. Problems with the dissolution clause in the trust deed gave the Commission cause for concern the trust deed might allow the trust’s assets to be applied for non-charitable purposes. 

UM then merely adopted a latent existing charity founded by Benhayon’s business associate Chris James, without disclosure to the UKCC. They extracted donations from followers on the promise the facility was for UM’s use and would be owned by the ‘student body’. UM filled the trust with donated funds and built the Sound Training Centre. Benhayon’s stepdaughter, and charity trustee, Simone, leases the pool year round for her commercial swim school. Some local Esoteric practitioners hire the treatment rooms. The conference facility is used for 3 months each year, May, June and November for Universal Medicine events, retreats, workshops and group and individual healing sessions conducted by UM leader, Serge Benhayon, his family and associates.  The conference centre is barely used for the remainder of the year.

The trust’s only charitable activities were promotions of UM and associates, and a pitiful grant to a local hospital.

The UKCC commenced an investigation into the charity’s UM connections mid 2013 and issued the trust with a mandatory compliance plan in October that year over trustee conflicts of interest and issues of public benefit. (The same reasons it was denied charity status in the first place.) After that the charity shuffled papers and people. Some of the trustees quit their company directorships of commercial UM UK Ltd, and UM altered its commercial publicity to say that it just hired event space from the trust.

Sound-Foundation1

Universal Medicine cult’s £2m Sound Training Centre, Tytherington, Frome, Somerset

Ongoing scamming

Even if they can find £380k, Benhayon’s congregation shouldn’t bail this out. Not after they’ve been treated so appallingly by the UM outfit, which has deceived them from the beginning, and continues to.

Donors were led to believe it was a legitimate ‘Universal Medicine Trust’. Then they were told the building would be owned by the trust for the ‘students’. They were told Universal Medicine UK was a not for profit ‘unit of service’ presenting ‘on behalf of and for the Sound Foundation a charity’…whatever that means. They were pressured to make regular cash donations, including via direct debit, and to volunteer their time and labour.

The charity now claims to have 40 volunteer staff, and since the UKCC action, Benhayon and his minders have conned the slaves into carrying out something resembling charity work to prevent the CC from shutting it down altogether. In the latest accounts the trust has had to itemize charitable activities. Only a couple of events were held at the Sound Training Centre. Peaky Blinders director, Otto Bathurst, held a meeting to talk about men’s health, for example. The rest were held offsite, consisting of volunteers doing hospital and nursing home visits, singing and whatnot, perhaps buttering up the elderly for monetary gifts and bequests.

Like the Australian charity (update for that parallel mess coming soon), the only real beneficiaries are the Benhayons, and above all Serge.

Charitable swimming

As discussed in last year’s update, Simone has been leasing her Creative Aquatic swimming facility – heated indoor pool, changing rooms, toilets etc. for £10k per annum. A knock down rate. Moreover, she’s been writing off ridiculously large ‘donations in kind’ to the charity. The charity accounts show ‘charitable swimming activities’ (truly) notched up as both income and charitable spending. Notes in the accounts claim the donations in kind take the form of ‘medical and rehabilitation swims’ and discounted lessons, pool access and memberships.

The value of all of this philanthropic swimming?

  • 2013 £81,000
  • 2014 £95,362
  • 2015 £30,577 (6 months only)
  • 2016 £68,935

Breaking this down, she’s claiming roughly £1500 worth of swimming per week, that she performs from a 15m pool barely big enough to do proper laps in, and she runs about fifteen swim lessons spread between five teachers per week. Normal price swim access is £3. A lesson is £5. An annual, normal priced membership £10. The pool is open about six hours per day broken up into sessions. Do the maths. Her business would be hard pressed to turn that over each week, yet she reckons she donates that much to the charity on top of running the swim school.

Universal Medicine UK

Simone’s stepfather, Serge, takes a full Australian entourage to the UK for 3 months annually. They take over the whole centre and run about 60 days of advertised workshops, retreats etc. Additional private and group healing sessions, classes and other activities run by his family and associates are advertised to the mailing list only. Plus merchandise sales. The 5 day retreat alone was attended by over 230 followers in 2012, at approx. £1000 per person, and images show attendance of well over 100-200 at other events.

SoundFoundationpaxemin1

Esoteric Massage – Sound Foundation trustee Sara Williams centre foreground

SoundFoundationsingalong

UniMed cult event at the Sound Training Centre near Frome, Somerset

Benhayon and that lot paid a total of £5833 for that 3 months of hire. Less than £100/day (I estimate about £75/day) to turn over hundreds of thousands of pounds, if not over a million.

For some perspective, what they pay doesn’t cover the building’s energy bill for the same period. The building’s power bill is £28k per annum. (£75/day).

According to the accounts Benhayon hired the facility through Universal Medicine UK Ltd. The charity accounts falsely state he is a company director of UM UK. He has never been. Benhayon’s turnover evidently doesn’t go through the UM UK company, so where does it go? Does he pay tax on it? Anywhere?

In short, Benhayon’s followers funded what they thought would be a legitimate charitable premises for him to deliver his sermons and healing scams, so that he pays miniscule commercial overheads for an annual turnover of hundreds of thousands of GBP that he appears to export.

To add insult to injury, he’s set up his daughter and major donor, Michael Nicholson, as trustees of a bent charity that was always wide open for regulatory action. They’ve been hit with a giant tax bill, and they’re probably legally liable. And Serge’s name is nowhere near it. Rather, he’s building a huge new $1m+ McMansion in the hills near Lismore – enhancing his 8 figure property portfolio.

Were followers informed of the tax liability? Have they been informed of who will pay it?

We’ll have an ear out for what happens next.

Baseless complaints?

I’ll take the opportunity to remind readers that since May 2014, UM have publicly labelled us liars, falsely accusing us of false accusations and labelling me a ‘criminal’, saying I’ve broken the law by making baseless complaints to regulators. The Sound Foundation’s 2014 accounts devoted a few paragraphs to spraying Lance and I for running a ‘trolling campaign’ – referring to the complaints that resulted in regulatory action by the UKCC in 2013. They’ve persisted with those defamatory fictions for 2 years, yet, on top of the 2013 UKCC action, Benhayon and the charity directors have known about this HMRC bill – a frank confirmation of tax evasion – for over 18 months.

We might call it a killer blow to UM’s credibility, but they had none to begin with.

Benhayon’s faith-full have invested a lot on their devotion to him, and are showing signs of expenditure fatigue. They’ve overlooked an enormous number of lies and while they’ve fired off plenty of flak they’re set to wear just as much. Question is, will they wear this as well?

More posts on UM’s Sound Foundation charities 

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29 thoughts on “Update August 2017 – UniMed UK’s dubious Sound Foundation Community Care Charity and its mystery VAT debt

  1. Ooops. I have no doubt paws will be smacked and someone will be banished to the astral plane. Those pranic people at HMRC have decided to persecute the UniMob and grab a load of the Messiah’s dosh without so much as a thought for the suffering they cause. Oh woe is Sergio.

  2. Aaow!!!!
    Sergey you’re not ok
    Sergey in the UK
    You’re not ok Sergey
    UMers you’ve been hit by, you’ve been struck by a smooth criminal……….AGAIN
    Aaow!!!

  3. The global legal world is closing in
    It was inevitable
    Truth will always surface and justice will prevail
    The absolute obnoxiousness of Serge Benhayon to think he is above the law with his public scams and in your face tacky bullshit cult
    Interesting to see a control freak now being legally controlled himself, something he would absolutely hate
    No room in a small cell for a big tractor
    And no glorified crapping, just prison guards for an audience on a monitor
    Great watchdog work Esther, warning the world of this hideous human

  4. Fascinating. It may well be that Simone, aka Winston Churchill, is a marvellous teacher and deserving of multitudinous awards but who is S[redacted]s. I’m sure I’ve heard that name somewhere.

    • Sorry to do this Pranic Puss, but I removed the name there. You’re not to know but she’s a juvenile – daughter of The Lighthouse keepers, ex UM UK company directors. Poor kid’s name and image is shopped all around the internet to sell all sorts of dubious UM tripe, including Sergio’s underaged slumber parties, defamation AND anti-cyberbullying. It’s my policy cult kids aren’t identified on my sites.

      Ha! I forgot about Winston, as mentioned in the Leser article. Apparently Simone resembled the old sausage from a young age. http://www.smh.com.au/lifestyle/the-da-vinci-mode-20120820-24h50.html

  5. Naughty, naughty!

    How illuminating is the constant rotation of directors and charity/business structure. Nothing unusual going on here is there? Glad HMRC has caught up with them. And as it’s a VAT bill there should not be any wriggling out of it – large tax bills are often negotiated down but not with VAT. Shame Benhayon’s name is not on the liability but his stench is all over it.

  6. The charity was getting very fat,
    Then it got a big bill of VAT.
    And like everything else Benhayon considers a hit,
    It soon turns to a very big pile of shit.

    The minions did scramble,
    To hide their contribution to this scandal.
    But you can only con for so long,
    before the good people expose your wrong.

    Sergio your day is coming,
    And very soon we all hope you’ll be slumming.
    We’re watching your every move,
    And your transgressions will not be hard to prove.

  7. As Esther points out, Serge is very good at keeping himself out of harms way. When the ACNC investigation was on here, he resigned as chairman which he had just told a reporter he would never do as he didn’t want his work “bastardised”. He then diverted an $1.4m bequest from the charity coffers and to his own. He’s now building a house worth that at least. The ‘fiery building’ fund hasn’t been touched so the money taken from members, hitherto seen gathering like smiling lemmings as Serge pitched them, is failing to build the HQ for the new world religion. Simone, aka Winston, is in the firing like for the UK tax bill along with Serge’s chief Brit sycophant Mr Abacus Williams.

    I don’t know if the ATO work retroactively here but it would be nice if they decided that it was never a charity and tax should be paid on those funds. I’ll pitch that to them soon. Serge already enjoys GST free income from his ‘education’ courses which means he most probably gets significant GST refunds every quarter on the money he declares.

    I’d have to say, deciding to run a cult and claiming he knows everything was a good move as it’s put him in a grey area of law and ethics. Whether Serge planned it, or just got lucky, he’s been dodging bullets for over 25 years. Being a fifth level master from Sham-ballah with his HQ at Con-very’s lane confuses the hell out of those that should take action.

    But action has been taken. The cult constantly spin that he’s been exonerated at every turn. The truth is, he’s just avoided taking the blame for a multitude of questionable activities too long to list. He’s put others out front to take the hits, rubbish their reputations, and look like fools. Sadly, they probably feel privileged to be in that position.

    One thing is for sure, we know he and the cult don’t like Esther and I. Those damned baseless complaints. 🙂

  8. Sounds like a necessary ‘karmic correction’ to me. It’s a good thing Serge imparted the ‘revelation’ that money ‘heals’ (even though ‘Capitalism is evil’). That £380k should go along way towards serving the community, unlike UM’s bogus modalities.

  9. Alison Greig wrote this early this year on the UM site, echoing several such posts written since regulatory action was taken several times.

    Lance, please mention Sergio’s UK income to the ATO.

    It’s unfortunate the regulators don’t release outcomes of their investigations. They do sometimes to news outlets, so let’s hope we find out, but given UM attempted to conceal this action for 20 months, who knows what else they’re not disclosing. HMRC could have billed Serge and Simone for all we know. The ATO might have as well.

    HMRC acted 20 months ago, so what is the status of that debt? The only info available publicly refers to the accounts up to September last year – nearly a year ago.

    Good comment MacReady, the £380k VAT will actually serve the public. I’m wondering if HMRC or UKCC has powers to seize assets.

    Let’s face it, all that charity is doing now is visiting elderly people. You don’t need a conference facility for that, or six cult sycophant trustees.

  10. Thank you Esther and team for your sticktoitiveness. Noun = dogged perseverance; resolute tenacity.

    Justice, though moving slowly, seldom fails to overtake the wicked~Horace, Odes, (23 BC)

  11. HMM!

    Is this the reason why Chris James has endured an apparent ‘code blue’ in hospital recently? Just asking?

    After all Chris James has been with $erge for many years and worked so so hard for $erge surely by now he would have cured all of his past present and future ill’s from singing and scouting & drumming up many $’s for $erge.

    Get better soon Chris James $erge need$ you to carry the can for him.

    • The man has a huge weight problem, no wonder he’s ended up in hospital. I hope whatever health issues he has are dealt with and he recovers soon.

  12. Believe I’m right in saying that Simon Williams used to offer ‘Esoteric Financial Health’ at The Lighthouse … I imagine it was wiped off the list of facilities offered as it would likely conflict with ethics of his professional Accountancy qualifications! Still, with both his accountancy expertise as director of several companies based at The Lighthouse and Mr Nicholson’s professional knowledge as Trustee of the UK Charity based there, you would have thought there would have been no mistakes with Tax, VAT, or Charity laws, policies and procedures. What do their professional bodies or HMRC make of it? I imagine Mr Williams helps relieve UMers of their financial worries ….
    https://uk.linkedin.com/in/simon-williams-88660718

    [Comment copied from the Exposed site. Admin.]

    • No mention of his UM activities on the Linkden page. Seems members are daily more and more reluctant to advertise their membership of UM. Why would this be if it’s the wonderful, positive group they used to claim it was?

      Poor old Ray doesn’t stand a chance because he’s associated with these loons.

  13. Just the Unimed living listed there but some familiar UM faces too. Universal medicine is listed in his resigned from companies.
    Hadn’t actually thought of the mayoral role but can see possibilities Esther!
    Also I see that amongst others he has recently become a director in a business described as “Other education not elsewhere classified” and various “Lanhydrock” businesses including what appears to be a long standing family estate in Cornwall of which he is accountant, chartered accountant and Company director all using the registered address as The Lighthouse … Anyway I just thought there were a few similarities there. https://beta.companieshouse.gov.uk/officers/SQd-sJ7M9-WtIIYKZyenTyq4ACw/appointments

  14. Thankyou Esther for the update on Uk charitable accounts, and for the explanation over the VAT. It is nice to see that some people can appologise and admit when something is wrong even if they were given no way of knowing the mistake at the time.

    The accounts for yeart ended June ’16 just published do not look very charitable other than to Serge Benhayons business which appears to have had use of the Lighthouse facilities for free last year!
    I also see that one of the main charitable activities is visiting old people in hospital especially those who have no friends and relatives to visit them. Somehow this helps the nursing staff. Alarm bells ringing here … I hope the NHS is not allowing vulnerable patients to be left open to exploitation!!
    Also you appear to have been judged without a trial in the NOTE on page 6 of the accounts – no doubt for the students benefit but is this fair in law?

    Keep up the good work

    [Thank you PA. This comment was transferred here from the Facts site. Comments are open again. Esther]

  15. Given what I know of UM, I don’t buy that the VAT was imposed during the transfer of the trust to the incorporated company.

    The more I think about it, the more I think HMRC did catch up with that scam and UM paid the VAT to avoid a scandal. Are they capable of lying in official documents? Oh hell yes. And perjury. Our culprits are more than willing to go to extremes to avoid having their prophet face his comeuppance.

    It would not be the first time one of the top rung sycophants has publicly told outrageous lies. In fact it would be just one of countless occasions.

    Of course I could be wrong. (When is the last time you heard a UMer say that?) But on the balance of probabilities, judging by the timing of my complaint, the substance of it – the comprehensive scam, and their loony fundamentalist persistence with obvious lies, there’s more than a good chance I’m not.

    • I wouldn’t beat yourself up over this Esther. If you look at the accounts the problem of the VAT seems to have arisen when changing the set up fo their charitable trust in January 2015, to a company set up where the directors/trustees can not be held liable in the event of failure of the business/charity. It seems confusing I know, and why should a charitable company go broke anyway unless the management are drawing too much out of it? They are showing assets of around 2 million!
      Maybe the change of charitable set up was something to do with being able to claim the VAT back, but only they know the answer to that. …

      What is clear from the accounts though is that if the VAT became due on the date the business set up changed (January 2015) and if it was clear that the new company set up could claim back the VAT, then why was it showing in the accounts nearly 9 months later (at 30th September 2015) as both a debtor and a creditor?
      This means that it was still both owing and owed by the charity at that point and had obviously not been cleared by HMRC to be voided at least 9 months after the set up of the charity was changed. Even then the 2 charities seem to have been combined in the accounts as the payment was surely due by the old charity and the refund reclaimable by the new company one – confusing I know!.

      All we can actually say from the accounts is that the debtor and creditor to HMRC for VAT at 1st October 2015 (triggered January 2015) has been cleared from the accounts by 30th September 2016 that could be between 9 and 20 months after the VAT was first triggered. They even state in the accounts somewhere that there is no interest to pay on the VAT. All this would indicate to me that it was not so straight forward as the accounts lead us to believe and it must have taken a while to sort with HMRC – but then I am only human and Pranic so I could be wrong but would welcome any further explanation …

      Maybe they have just deflected some of the potential VAT irreglarity on to you, for highlighting, Esther?

      Concerns :
      Universal Medicine has paid nil for rental of the Charities facilities from 1/10/2015 to 30/9/2016
      There are worrying references in the accounts to a growing number of charity volunteers, who are visiting the elderly in hospital who have no family or friends to visit them. I hope the hospitals are aware, and that this is genuine – not recruiting the vulnerable, through esoteric love, to harvest donations/bequests ..

      • Good observations PA. It’s certainly odd that the debt hung around for so long. I even wondered if they’d mounted a legal challenge. It’s not exactly clear is it? I can accept I might have been mistaken, what I can’t accept is their word for *anything*.

        I want to see the documents.

        Also, we can’t be sure about what UM paid or didn’t pay. Serge usually hires the facility as UM UK Ltd. Did he use a different company I wonder, and then should that have been declared seeing he is family of the trustee?? None of it adds up.

        • Basically for 1.10.2015 to 30.9.2016 :-

          Total income for the year of £204,467 of which :-
          donations and legacies £145,103 ( £88,412 of donated services and facilities, £39,370 donations, £8,456 Gift aid, £8,865 Heating grant)
          Investments £ 19,009 VAT repayments supplement?? +£56 interest
          and other trading income of £ 40,355 (HIRE- pool £10,000, conference centre £8,346, small room £8.617,dormitory £9317, catering £4,075).

          Maybe the hire of facilities to UM is now included in trading income, although it does say Nil from SB. Or maybe a chaitable gift OR maybe designed to confuse??

          Total expenditure for year £204,731 of which :-
          management fees of !!!! £115,877 !!!! what is this? Running costs?
          governance (whatever that is) £9,661
          less finance ( £2,782).
          charitable donations for year £81,975 (made up of £8257 accomodation, £497 event costs, £4,286 donations?? and £68,935 donated services for public benefit to Creative Aquatic – Simone Benhayon)

          Not sure how the donated services on each side of the equation actually works.

          Total income less total expenditure = loss for the year of £264 Small charitable loss 😦

          Just my interpretation but actual £’s donated to charity appear to be only £4,286?)

          • Well spotted, thank you PA. This is the help I’ve needed – an accountant! It makes no sense at all…

            £19,009 VAT repayments supplement?

            £115,877 management fees??? Are they management fees or legal costs?

            Show us the paperwork Sara.

          • Oops when I typed that it was all nicely lined up but has splatted itself now! It’s still all there but just not so easy to read.

          • I don’t think the comment formatting can be helped. Thanks for your input. I’ve updated the post again with some new questions – helped by your observations. The only thing that adds up in those accounts is that the Sound Foundation is a scam. I still haven’t heard of anyone in Frome being aware of £70-80k worth of donated swimming going on at the charity per annum. It’s fiction.

  16. I´m afraid, bookkeeping in English is way too hard for me to understand completely, but what I´ve understoold healed my low blood pressure. Thanks UniMed. Thank you (both) for getting knee-deep into it. What a load of mind-boggling work, which will pay hopefully.

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